March 12, 2009

Stock Limit announced

India Thursday issued a notice that sets sugar stock and turnover limits, with ceilings to be announced later by state governments, according to Dow Jones. The move limits the amount of sugar that can be stored by companies. The notification will be effective from March 27 for the following four months, the statement said. In Kolkata, the capital of the eastern state of West Bengal, recognized traders can hold stock of 10,000 bags of 100 kg each, while others are allowed to hold a stock of 2,000 bags. "It will bring down the prices by INR40-INR50 per 100 kg (US$0.77-US$0.96) as traders would offload their surplus stocks," said Mukesh Kuvadia, secretary of Bombay Sugar Merchants Association.

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